In Which Countries Are Stock Exchange Disclosure Regulations Most Stringent

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1. In which countries are stock exchange disclosure regulations most stringent? less stringent? What are the reasons for this?

Stock exchanges disclosure regulations are more stringent in most developed countries such as the U.S., UK, Germany, etc. It is because there are trillions of capitals involved and numerous cross-border transactions in the companies on those stock exchanges. One tiny issue in terms of disclosure of those companies may cause tremendous loss for the investors. Therefore, the disclosure regulations in those stock exchanges are more stringent. For developing countries or places that might attract capital, the stock exchanges have less stringent requirement on disclosures.

2. Discuss the kinds of information you would like to see in the corporate review, the operations review, and the financial review sections of an MNEs directors’ report.

For corporate review, I would like to see the management’s review of its past strategy and operation and evaluate the performance of it. Then they should create/update strategies based on their past performance and the new market trend. For operation review, I would like to see more detailed information on the operation of each division of the company. I will combine the company review and operation review to see if any division needs to be shut down and if there is new division needed. For the financial review, I would first like to see the sources and uses of capital of the company and whether we are achieving the return and sales we expected and examine our liquidity. Financial positions are also important input for the corporate review.